Perkins Loan
DESCRIPTION:
Federal Perkins Loans are low interest (5 percent), long-term
loans to help pay for your educational expenses. These loans are
made to undergraduate and are awarded based on need. No interest
is charged while students are enrolled in school on at least a
half-time basis.
ELIGIBILITY CRITERIA:
To be considered for an award, the student must:
- be admitted to VCU as a degree-seeking undergraduate student,
- be enrolled at half time (6 or more credit hours each semester),
- be a U.S. citizen or eligible noncitizen,
- demonstrate financial need,
- meet Satisfactory Academic Progress Standards as defined by
the VCU Office of Financial Aid,
- not owe a refund on a federal student grant or be in default
on a federal student loan, and
- not be enrolled in a program leading to a second associate
or baccalaureate degree.
HOW TO APPLY:
In order to be considered for this loan, students must file the
Free Application for Federal Student Aid (FAFSA) and have the
results sent to the VCU Office of Financial Aid by the VCU priority
filing date, ensuring that information provided on the application
is complete and accurate. Failure to resolve any problems with
the processing of the application, or delays in resolving the
problems, may preclude the student from being considered for this
grant.
AWARD AMOUNTS/LOAN LIMITS:
Award amounts are initially offered based on full-year, full-time
enrollment and range from $500 to $4,000 for the 2007-08 academic
year. Award amounts are prorated for students who enroll less
than full-year, full-time. For example, a student with full-year,
half-time enrollment will receive a prorated award in the amount
of 50% of the original award amount.
Undergraduates may borrow up to $4,000 per year, and graduates
may borrow up to $6,000 per year. The maximum aggregate amount
an eligible student may now borrow is: (1) $20,000 for an undergraduate
student who has completed two academic years and is pursuing a
bachelor's degree; (2) $40,000 for a graduate or professional student,
including loans borrowed as an undergraduate student; and (3) $8,000
for any student who has not completed two academic years of undergraduate
work.
PROMISSORY NOTE:
Students awarded a Federal Perkins Loan will be mailed a loan
promissory note. There is no master promissory note for the Federal
Perkins Loan. Students must sign their loan note each year they
borrow. Students who do not return the signed promissory note
by October 1 will have their loan canceled for the academic year.
INTEREST RATE:
The interest rate is 5 percent.
FEES:
There are no fees deducted from each disbursement of a Perkins
Loan.
RENEWAL:
Awards cannot be automatically renewed. Students must apply annually,
meeting the VCU priority filing date, and continue to meet the
eligibility requirements listed above.
DISBURSEMENT:
Federal regulations require two disbursements of all Federal
Perkins Loans. The first disbursement should be made during the
first week of classes provided that the VCU Office of Financial
Aid has received confirmation of the loan, that all documents
have been received, and that there are no changes in expected
enrollment status. The second disbursement should be made during
the first week of classes at the beginning of the second semester
for fall/spring loans, provided there are no changes in expected
enrollment status.
CHANGES IN ENROLLMENT STATUS:
If you use your loan to pay your university charges (tuition,
fees, room, and board) and during the drop period you reduce the
number of credit hours in which you are enrolled to less than
full-time, any refund due from this reduction in charges may go
to repay your loan.
If you use your loan to pay your university charges (tuition,
fees, room, and board) and you withdraw from all of your classes
or drop below half-time, any refund may go to repay your loan.
LENDER:
The lender for the Perkins Loan Program is Virginia Commonwealth
University. The contact information is:
Virginia Commonwealth University
Treasury Services Department
Perkins Loan Unit
327 W. Main Street
Richmond, VA 23284
(804) 828-4538
Web: www.vcu.edu/treasury/lserver.htm
LOAN SERVICER:
VCU's loan servicer for the Perkins Loan Program is Campus Partners.
The contact information is:
EXIT INTERVIEW:
A student borrowing a Federal Perkins Loan must have an exit
interview before leaving VCU or in the event they register less
than half time (less than six credit hours).
REPAYMENT:
If you have an outstanding principal or interest owing on any
Federal Perkins/NDSL Loan prior to July 1, 1987, you begin paying
six months after you graduate, leave school, or drop below half-time
status. If you are a new Federal Perkins Loan borrower who has
no previous outstanding principal or interest owing on any loan
as of July 1, 1987, you begin repayment nine months after you
graduate, leave school, or drop below half-time status. You may
be allowed up to 10 years to repay your loan. The amount of your
payment depends on the size of your debt, but usually you must
pay at least $30 per month.
DEFAULT:
If you fail to make a scheduled payment when due, the school
will declare your Federal Perkins Loan to be in default. You must
submit a deferment and/or forbearance request on or before the
due date of your scheduled payment. If you default on a Federal
Perkins Loan and the school is unable to collect, it will harm
your credit rating and the federal government may take action
to recover the loan. You cannot receive further financial aid
if you are in default status.
DEFERMENT:
Certain conditions may make you eligible to apply for a deferment
of your Federal Perkins Loan. Deferment options include:
- In-school Deferment
- Graduate Fellowship Deferment
- Rehabilitation Training
- Seeking Full-time Employment Deferment
- Economic Hardship Deferment
- Concurrent Deferment
- Hardship Deferment (available only for loans made before July
1, 1993)
- Service comparable to the Peace Corps/ACTION Volunteer Deferment
- Temporary Total Disability Deferment
- Internship/Residency Deferment
- Parenting Deferment (available only for loans made before
July 1, 1993)
For details about deferment options, click
here [pdf].
CANCELLATION OF LOAN REPAYMENT:
There are cases where your loan will be canceled-for example,
if you die or become totally and permanently disabled. Other conditions
are listed below:
- Teaching Cancellation
- Early Intervention Services Cancellation
- Law Enforcement or Corrections Officer Cancellation
- Nurse or Medical Technician Cancellation
- Child or Family Service Agency Cancellation
- Headstart Cancellation
- Military Cancellation
- Volunteer Service Cancellation
For details about cancellation options, click
here[pdf].
VCU
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